Chrysler Corp. will acquire Thrifty Rent-A-Car for $263 million, Chrysler chairman Lee Iacocca said.
Iacocca told stockholders at Chrysler's annual meeting here last week that the tender offer for the auto rental company - the nation's fifth-largest - worked out to $27.75 a share."Thrifty is a solid player in the car rental business and in our dealing with Thrifty in the past six years we have been impressed with the strength of the company and its management," he said.
"That played a key role in our decision to take this step in what is a natural alliance cementing a good relationship."
Thrifty, based in Tulsa, Okla., has more than 650 locations worldwide and an average fleet size of more than 33,000 vehicles. Chrysler officials said it operates the largest and oldest off-airport rental network.
Thrifty had revenues for the fiscal year ending June 30, 1988, of $79.3 million, with a net income of $9.1 million.
"We are delighted by the prospect of joining forces with Chrysler," said Thrifty Chairman William E. Lobeck Jr. "Our board of directors recommends unanimously that stockholders tender their shares.
"With Chrysler's resources behind us in the future, we can expect additional growth for the company."